WellCare Health Backs FY16 EPS View; Sees FY17 Earnings Below Market Estimates

(RTTNews) - WellCare Health Plans, Inc. (WCG) on Monday said it continues to expect fiscal 2016 adjusted earnings per share to be in a range of $5.35 to $5.45.

On average, 12 analysts polled by Thomson Reuters expect earnings of $5.43 per share for the year. Analysts' estimates typically exclude special items.

For the full-year 2017, the company expects its adjusted earnings per share to be in the range of $6.00 to $6.25. Analysts expect earnings of $6.31 per share for fiscal 2017.

The company noted that, excluding $0.22 per share in out-of-period Florida retroactive premium revenue that was recorded in 2016, it expects its 2017 adjusted earnings per share to increase approximately 18 percent year over year.

WellCare's 2017 guidance includes its pending acquisition of Care1st Health Plan Arizona, Inc. and One Care by Care1st Health Plan of Arizona, Inc. that is expected to close on January 1, 2017. The forecast excludes its pending acquisition of Universal American Corp. that is expected to close in the second quarter of 2017.

Total premium revenues are expected to increase 9 percent year over year, primarily as a result of organic growth in the company's Medicaid and Medicare Health Plans segments and the acquisition of Care1st Arizona.